From AICPA and CIMAcomes a new global designation.

The American Institute of Certified Public Accountants and

Chartered Institute of Management Accountants proudly

announce the creation of the Chartered Global Management

Accountant (CGMA) designation, to elevate the profession of

management accounting.

Demonstrating management accounting expertise, determination

and commitment to achieving sustainable business success,

CGMAs are trusted by businesses worldwide to guide critical

decisions and drive strong performance.

CGMA delivers the financial expertise companies demand.

And the performance excellence they deserve.

Find out more at cgma.org

PublisherChartered Institute of Management AccountantsLevel 1, KPMG Tower8 First Avenue, Bandar Utama47800 Petaling Jaya, SelangorMalaysia

T. +60 (0)3 77 230 230F. +60 (0)3 77 230 231

www.cimaglobal.com

eDiTOriAlEditorChan Siew Lian

WriterAnna Rozana Ramli

Design & Layout

Ireka StudioE-5-06 Neo Damansara Jalan PJU 8/1, Damansara Perdana 47820 Petaling Jaya, SelangorMalaysia

E. irekastudio@gmail.com

PhotographyMeor Mazlan

COrPOrATeRegional Director SE Asia and Australasia: Irene Tengirene.teng@cimaglobal

Head of SE Asia: Venkkat Ramananvenkkat.ramanan@cimaglobal.com

MARKETING AND CoMMuNICATIoNS

Regional Marketing Manager: Choong Kok LeongManager: Chan Siew LianExecutive: Anna Rozana Ramlioperations Assistant: Meor Mazlan

Send your comments and feedback to:SEAsia@cimaglobal.com

Contents

2

11

15

16

FEATuRE

RECoMMENDED ARTICLE

Determined to win

The road less travelled

How to be a boss, not a buddy

Shared service centres:building tomorrow’s talents

It was 1977. In the midst of the Cold War, Dato’ Michael Eow’s plane, which was en route to London, touches down at Moscow’s international airport on Christmas eve. For Penang-born Dato’ Michael, the freezing temperature was a new, brutal, and wholly unwelcomed introduction to the northern hemisphere – much more so given that military personnel with assault rifles had a heavy presence at the airport. He had just left the warmth of the tropics hours ago and home seemed further than ever, but this was no hindrance for a man on a mission.

The truth is that Dato’ Michael was not a stranger to moving as he had done so several times when he was a child. His father was the only wage earner of the family and his mother was a housewife, and at certain junctures, the family followed his father’s job. The financial constraints the family had to endure precluded them from being able to afford any luxuries, even in those simpler times. From Kuala Lumpur, the Eow family moved to Ipoh and then back to Kuala Lumpur again. Despite having to uproot not once, but twice, Dato’ Michael nevertheless managed to attend La Salle schools in both towns.

FEATuRE

Determined to win‘So I did some research at that time—back in the early 1970s—and determined that CIMA was a qualification that was forward-looking as it did not just provide academic knowledge but it would also give me an opportunity to take part in the decision-making process of the management. Being a member of the management team appealed to me!’

3Inspire

Decision timeHowever, the time soon came for Dato’ Michael to help his father supplement the family income, so he started working after Form Six. “I had to make a decision. What do I want to do or pursue going forward? My parents were not very educated, so they could not give me the best advice. The only way for me to better understand my options was to talk to my friends and try to find out what would make me employable in the market because getting a job with a reasonable pay was very important.”

“I found out from them that if I were an accountant I would have no problem getting a job. So I did some research at that time—back in the early 1970s—and determined that CIMA was a qualification that was forward-looking as it did not just provide academic knowledge but it would also give me an opportunity to take part in the decision-making process of the management. Being a member of the management team appealed to me!” said Dato’ Michael.

After finishing Form Six, Dato’ Michael was offered a job at UMW and subsequently at Avis, the car rental company. Whilst working, he began his CIMA studies in the evenings after work. Due to a lack of CIMA-focused teaching facilities at the time, Dato’ Michael made the bold move to quit his job at Avis and decided to devote his entire effort to acquiring his CIMA qualification.

4 Inspire

‘Passing the CIMA exam was the highest priority of my life at that time because I knew it would change my future.’

The extra mile“Passing the CIMA exam was the highest priority in my life at that time because I knew it would change my future. I needed to pass, and I needed to do it quickly. I decided to quit my job and focus entirely on the final part of the exams. With what little savings I had, plus some help from my father, I managed to enroll at the London School of Accountancy to receive the appropriate tuition to complete the CIMA examination. At that time, Aeroflot flight tickets were the cheapest available, so I had to take it.”

“I only had enough money to buy a one-way ticket, rent a room, and sustain myself for a couple of weeks. The lack of financial resources forced me to work part-time in the evenings while studying full-time during the day. Upon touching down in London, the first thing I did was to look for a job and as luck would have it, it was Christmas. The start of classes -was still two weeks away so I managed to earn a bit of money for my stay there,” Dato’ Michael says.

Dato’ Michael eventually stayed there for a year to complete his CIMA examination. During his semester break, he worked at a shoe shop as a sales assistant during the day and as an usher in a theatre at night—almost 12 hours a day for 2 months, with Sunday as his only day off—which Dato’ Michael says is a great difference from the present day, where many people have it easier because they believe that they can inherit their affluent parent’s money and live off that instead of having to work hard.

5Inspire

6 Inspire

The thousand-mile journey beginsThe first job that Dato’ Michael managed to land himself after receiving his CIMA qualification was a costing accountant’s position at Intel in Penang. Working at their testing facility, Dato’ Michael’s role was to cost out their testing activities. He excelled in this role and was justly rewarded for it.

“I was given an opportunity to visit the Intel headquarters in Santa Clara, California, to gain exposure on how microchips were produced at the wafer plant. In the course of work, I was involved in developing a productivity indicator to cost out the testing of semiconductor chips. I was also in the States to present this indicator to them and the experience was a real highlight for my early career. It was a complete eye-opener,” says Dato’ Michael.

Dato’ Michael left Intel after a year and went on to work at an oil palm refinery in Port Klang. It was during his time there that he spotted a vacancy for a senior accountant at the Lion Group in the centrespread of a local daily. His wife, who was also working in Port Klang, had encouraged him to apply.

He got the job. The transition into the Lion Group was a wholly-new experience for him as their steel mill facility in Klang sat on 60 acres; the large facility was a hint of a welcome into the big leagues.

“It was in the Lion Group that I really put my management accounting knowledge into practice to cost out their steel products as well as to introduce management accounting techniques to help the management team make decisions.”

“I was also tasked with the computerisation of the company when it introduced the IBM System/36, System/38, and AS/400 systems. Because I was very much involved with implementing these systems, the computer manager reported to me, besides those who did accounting. I

was basically in charge of the finance function and the computerisation of the steel mill,” tells Dato’ Michael.

Not one to rest on their laurels, the Lion Group began to expand aggressively and invest into other businesses. Its expansion forays involved Dato’ Michael a great deal, and he gained valuable exposure into different businesses and industries. Besides a car and motorbike franchise, the Group also ventured into tyre production, retail, chocolate manufacturing, property development, purchasing of plantation land for property projects; financial services, and insurance broking. During the course of the Lion Group’s expansion, Dato’ Michael played a significant role in the public listing of the Group’s stable of companies further enhancing his experience in corporate finance.

The expansion created a need for an organisational restructure and the setting up of a head office to monitor everything. Because of this, Dato’ Michael was transferred to the head office to become the Group Chief Accountant—a big promotion for Dato’ Michael.

“All the operating accountants reported to me, which, at the Group’s peak, involved 120 accountants across Malaysia and abroad. Mind you, the Group had about 20,000 employees

7Inspire

under them at any given time,” Dato’ Michael explains.

Of course, the benefits went both ways: Dato’ Michael learnt a lot and responded in kind by providing his knowledge and tools from CIMA for the Group’s benefit. In total, Dato’ Michael served the Group for 17 years.

These days, Dato’ Michael is the Executive Director of IRIS Corporation Berhad. Having joined this organisation from scratch, he has been in IRIS for 15 years. When IRIS began, its small stature presented a significant challenge for Dato’ Michael to source for the funds needed to start doing business in its 330,000 sq ft premises.

However, IRIS became the company that started the world’s first electronic

passport. After the launch of the passport, the Malaysian government called for a tender for the MyKad. IRIS had wanted to partner with big companies, but they were reluctant to. Nonetheless, sheer hard work and determination enabled IRIS and its partners to develop the latest technology for the MyKad chip, which had one chip and eight applications—winning them the tender.

“The experience I gained from the Lion Group helped grow this company from scratch. Today, we are a technology solutions provider to 15 countries and we are well on track to grow the company and expand our business. With current annual sales exceeding RM500 million, we plan to be a billion-Ringgit company in a few years,” he says.

‘That passion, determination and the focus must be there. That is the way to achieve success,’ says Dato’ Michael.

‘The experience I gained from the Lion Group helped grow this company from scratch. Today, we are a technology solutions provider to 15 countries and we are well on track to grow the company and expand our business.‘ he says.

8 Inspire

9Inspire

The fruits of labourDato’ Michael’s career progression has taken him to the highest levels of management, and he now sits on the board of several public listed companies. Besides having been involved in various committees in CIMA Malaysia, as well as being a past President of CIMA Malaysia, Dato’ Michael has also been recently elected to the CIMA Council in the UK. Furthermore, he was also the President of CIMA’s Southeast Asia Regional Board.

His efforts have lent itself towards improving the profile of CIMA, and in return, it reflects well in his capacity as a member of the management team.

“These achievements boost the company’s image because the stakeholders know that the company is well-looked after in terms of corporate governance, compliance and professionalism,” offers Dato’ Michael.

For him, it is hard work and perseverance that pays. Not only was he able to obtain his CIMA qualification, but Dato’ Michael also met his future wife at that college. Incidentally, she is also a CIMA member. He returned to Malaysia with his qualification, started his career, and also got married. To cap it all, Dato’ Michael was conferred a DIMP which carries the title “Dato’” by His Royal Highness, the Sultan of Pahang in December 2012.

What is the secret to it all?

“That passion, determination and the focus must be there. That is the way to achieve success,” says Dato’ Michael.

IRIS became the company that started the world’s first electronic passport. After the launch of the passport, the Malaysian government called for a tender for the MyKad.

10 Inspire

11Inspire

The road less travelled

From his perch at one of the most important agencies in Malaysian aviation, Jeremy Nasrulhaq Boyce is glad to see where his decisions have taken him in life. In retrospect, it turned out well for a little boy who once considered a tea plantation near Banting his stomping grounds. Born in Klang of an English father and Malay mother, Jeremy is the fourth of eight children—seven of which are boys.

“All of us turned out to be professionals, though I am the only accountant in my family. I think my parents raised us very well, and they did not spare the cane, not ever,” recalls Jeremy, fondly.

His CIMA credentials, which is a professional qualification, has carried more weight than his degree ever did. Furthermore, his decision to take up CIMA resulted in him becoming a Fellow, and this has allowed him to reap unparalleled benefits.

Upon completing CIMA, things began to change for him. Doors opened, and opportunities arose like never before.

In simpler times, Jeremy and his six brothers would roam and play on the plantation grounds their father managed and he attended a primary school 15 kilometers from home as there was no school on the plantation. After his father retired, they moved to Klang in Jeremy’s teenage years and he attended the Anglo Chinese School in Klang (now called SMK Methodist (ACS), Klang).

Jeremy was a vivacious teenager and an avid sportsman, and represented the school in many sports. Beside football, volleyball, badminton and athletics, Jeremy excelled in cricket and ACS had the distinction of being Selangor state

champions during his time at the school. It is no wonder, then, that Jeremy was made School Captain at ACS Klang.

He then pursued a Bachelor of Science Degree in Agribusiness Science from Universiti Pertanian Malaysia (now Universiti Putra Malaysia) which he passed with Distinction and was the top student there, winning two scholastic medals out of three the Faculty of Resource Economics and Agribusiness offered for outstanding academic achievements. After his success at university, Jeremy began his career and got married shortly after. It was after getting hitched that he decided to take

Inspire12

up CIMA whilst he was still working for Lever Brothers (now known as Unilever), a company he was destined to play a significant role in for almost three decades.

The decision that changed it all“My expenses were paid for by the company as long as I passed, which I did. I would say that my experience definitely carried me through, especially in the last part, then known as Professional Stage Three. Relevant experience is a significant factor in succeeding in CIMA,” Jeremy said.

As that time, Jeremy’s CIMA course mates could, literally, be counted on two hands—ten in total. After he had finished his day’s work at the office in Jalan Bangsar around 5:30 pm, he would then head over to a nondescript shop house in Petaling Jaya where, in the upper levels, his college was located. Classes started at 6 pm, and lasted for about two to three hours. During the duration of the class, Jeremy’s wife would patiently wait nearby before they went back home to Shah Alam. Jeremy passed all his papers in two years without failing a single paper.

“My wife would patiently wait for me to finish. It was tough, but looking back, it was definitely worth it,” he states.

How does Jeremy qualify that statement? Quite easily. For one, Jeremy tells that his CIMA credentials, which is an internationally recognised professional qualification, has carried more weight than his degree ever did.

Upon completing CIMA, things began to change for him. Doors opened, and opportunities arose like never before.

13Inspire

Prior to taking up CIMA, Jeremy was in the logistics department, but upon completing CIMA, he was moved into the management accounting department. There, things began to change for him. Doors opened, and opportunities arose like never before. Jakarta, Surabaya, and Singapore were a few of the countries he was posted to. He worked in the Unilever regional office where he had the CFOs of 26 countries referring to him for advice. Singapore was a particularly exciting experience for Jeremy as he managed to walk along, as he calls it, the “corridor of power” and network with all the company’s regional bosses and CEOs of countries where Unilever operated. He rose in the company ranks holding positions such as Regional Finance Manager for Unilever Foods Asia, Commercial Director, National Finance Director and Supply Chain Director across two countries i.e. Malaysia and Singapore, responsible for assets and the finances of a company with a revenue of RM1.2b (or US$375m p.a.) then. Unilever also recognised his potential and provided executive coaching for him to groom him for leadership positions.

“In Malaysia, the emphasis is on financial accounting rather than management accounting but, the way I see it, the new accounting syllabus is incorporating more management accounting because it is a more important aspect of business than financial accounting,” reveals Jeremy.

‘My wife would patiently wait for me to finish my CIMA classes. It

was tough, but looking back, it was definitely worth it.’

Reaping what was sowedIn 2007, Malaysia Airports Holdings Berhad (MAHB) called Jeremy to join its board as an independent, non-executive director in light of his extensive experience in a multinational company and commercial business. This experience also had the added benefit of introducing Jeremy to many people from the government and private sectors. Furthermore, he was also eventually honoured with a position as Chairman of MA Niaga Sdn Bhd, Chairman of the Board Nomination and Remuneration Committee, a member of the Board Audit and Board Finance and Investment Committees of MAHB.

A second company also invited him to be on their board in 2007 due to his extensive experience in the fast moving consumer goods (FMCG) industry. Jeremy serves on the board of Sweetyet Development Sdn Bhd (SDSB) in the FMCG business. SDSB is involved in the marketing and sales of global brands such as Mazola cooking oil, Timotei shampoo, Brut and Denim men’s fragrances and Asepso personal care products.

14 Inspire

“My success in my studies comes from reading beyond the required reading and working hard,” he says.

These days, Jeremy has taken the pace of his career down a few notches, choosing instead to leverage his decades of experience to solve the challenges faced by some of Malaysia’s most important corporate institutions. As such, besides being active on the boards of MAHB and SDSB, he is usually busy spending ample amounts of time with his family. His penchant for golfing can trace its roots to his boyhood love for sports, and these days Jeremy hones his skills at one of the few golf clubs he is a member of. As much as he can, Jeremy tries to be a doting grandfather to his grandchildren and even personally drives them to preschool when he is not busy. Once or twice a year, Jeremy and his wife, daughter, son-in-law and grandchildren will pursue an overseas adventure on a vacation as one family.

‘To those who are pursuing their studies in accounting, I have this to say. The first thing is that you have to believe in yourself. You must believe that you can do it, because belief comes before anything else. Then, you must have an ambition to achieve something. once you have determined what you want to achieve, you have to work hard towards it.’

RECoMMENDED ARTICLE 15Inspire

Expect change. If people are working for you, rather than with

you, the relationships are different. If you struggle with this, think back to how you used to discuss your boss over a few drinks. Now, you are that boss. Your former colleagues will be less open and gossipy with you. But this doesn’t mean everything changes. You can still have good relationships with those who now work under you, and you shouldn’t let the power go to your head. Rather than expecting a radical shift, you should expect some differences, and you should try to build on the relationships and trust you had before.

Find new peers. You still need that peer group who provide support,

advice and an informal sounding board. Now that you’ve moved up, you have a new set of same-level colleagues, and you need to form new relationships with them. If you feel daunted by being on a level with those who were, until recently, your superiors, you shouldn’t worry. Work matters will provide the commonality of interest needed to kick-start these new connections.

Don’t be insecure around those you manage. It was you who got

promoted, not your former colleagues. Show people respect and demonstrate

leadership, and they will follow. Remember, too, that not everyone wants to be a leader; many people are happy to be managed, even if they are considerably older than you. Equally, don’t be afraid to ask your team for advice, particularly if they are more experienced. Done occasionally, it is flattering and builds bonds.

Be scrupulously fair. When you were part of the team, you

undoubtedly liked some people more than others. And this wasn’t a problem, even if they knew it. But charges of favouritism are something that those who manage former colleagues often struggle with. You shouldn’t be too friendly; you need to play it straight. If you show favouritism, you’ll undermine yourself as a manager. The best thing you can do is judge everyone on their performance, regardless of personal feelings. You may discover that those whose company you liked best as peers are not quite so much fun to manage.

Deal with jealousy. Former colleagues might resent your

elevation. The best way to cope with this is to show an interest in their career development and advancement. Demonstrate that you do want them to progress. Be pleasant and decent; praise people for good work. If you have

Managers who are promoted above their peers often find themselves in the difficult position of having to be a boss to former colleagues or friends. Similarly, if they get on well with those they manage, it is natural to start thinking of them as friends.

So, how can managers ensure that they have the right relationships with their team? Here are a few tips on how to be a boss instead of a buddy.

particular problems with an individual, you may need to take him or her aside. Here, you shouldn’t tell him or her that you’re sorry. Explain that the decision has been made, that it’s not going to be unmade, and that he or she needs to deal with it. Tell him or her that, if the problems continue, it could become a performance management issue.

Use your inside knowledge. Remember that having worked on a level with the team you now manage, you have a far better understanding of their strengths, weaknesses and goals than you would if you’d just been parachuted in. Rather than acting in a technocratic way, use this knowledge to empathise with, engage and motivate your team. It should make you a better, more realistic boss.

If you have to be tough, be tender, too. Sometimes you

need to make decisions that the team won’t like, such as those that are in the best interest of the business, but not of those you manage. You might have to withhold sensitive information from them or deliver bad news. There is nothing wrong with bringing a personal element into these situations and showing that you care. Indeed, if you have good relationships with those you manage, they are more likely to take unwelcome news well.

Be a boss first. All the old clichés about being liked and being

respected have a lot of truth to them. Friendships are relationships between people who (on some level at least) are equals, whereas the boss-subordinate relationship can never be like that. Good bosses often make decisions that have people, years down the line, saying, “I hated him at the time, but I later realised how right he was.” This kind of tough but fair stance is something people readily accept from a boss, but usually not from a pal. If you try to be a good boss first, you may, at a later date, become good friends. But if you try to be a good friend first, you will never be a good boss.

— Rhymer Rigby is author of The Careerist: Over 100 Ways to Get Ahead at Work.

1

2

7

8

5

6

3

How to be a boss, not a buddy

RECoMMENDED ARTICLE16 Inspire

A roundtable of corporate leaders from the shared services industry organised by CIMA SE

Asia in early 2013 found that the speed at which Finance Shared Service Centres (FSSCs)

are being set up in the country is outpacing the availability and skills of the local talent

pool. Malaysia’s success as an FSSC location means that it is currently an employees’

labour market and this is compounded by a perception issue where business and finance

graduates tend to shun the shared services industry for the ‘Big Four’.

Much has to be done by FSSCs to increase awareness of the industry’s prospects and

career opportunities. FSSCs, which are previously very transactional, have moved up the

value chain to high value work such as business partnership and analytics. Fifteen years

ago, 99% of the work was data entry but today it’s only 1.5% of the work.

FSSCs are now seen as catalysts and enablers in changing finance services, with implications

on talent and the skills needed. These are in the areas of communication, leadership

(including respect and empathy) and service skills. Talents also need to be more business

savvy as shared services has to be run like a business. The FSSC has to treat other parts of

the business as a client. It has to deliver a certain level of service to its internal clients to

build trust in its capability to run the finance function in a remote location.

CIMA SE Asia is pleased to share a case study of a career in the shared service industry.

View the case study and the roundtable report at www.cimaglobal.com/our-locations/

Malaysia/News/

Building Tomorrow’s Talents

sHared service centres

The joint venture between AICPA and CIMA aims to elevate the profession of management accountancy through the Chartered Global Management Accountant (CGMA) designation, as well as taking it to new heights by becoming the most valued, globally recognised recognition. Here are just some of the many success stories from CGMAs.

Chartered Institute ofManagement Accountants

Lot 1.05, Level 1, KPMG Tower8 First Avenue, Bandar Utama47800 Petaling Jaya, SelangorMalaysiaT. 03 77 230 230F. 03 77 230 231E. SEAsia@cimaglobal.comwww.cimaglobal.com